Good morning,
Last week's Weekly Watchlist said, "PRPL around $3 is a favorite of mine. If this can hold the upper $2's as the market sorts out, $4's doesn't seem unreasonable to me. Use and like the product, guessing they get bought out at some point."
That didn't take long → news it out this morning they're being acquired.
So what's next?
I think FUBO, PTON, and GPRO are likely targets at these depressed levels as well. I like the stock on all three of them but call options slightly out of the money, 8-weeks out, could work well too.
Finally, as a bonus idea I think looking at the $50 calls on RBLX out 8-weeks could work too. Little bit higher price but $5 out of the money will bring down the cost here quite a bit. Strong pattern that I think hits $60 sometime in that time frame.
Markets, as I'm sure you've seen, have been crazy volatile and in a downtrend, so I continue to try and trade conservatively with momentum stocks. I do like to think we see a bounce into the mid-term, but with the FOMC this week and concerns over inflation and interest rates, probably choppy this week is my guess.
For more ideas, join us in 360 Wall Street.  Jason Bond
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